Bitcoin Holds Ground At $65,700 Amid Unchanged Fed Rates, Anticipating September Moves

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As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed firsthand the ebb and flow of economic cycles. The latest address by Federal Reserve Chair Jerome Powell has once again piqued my interest, as it seems to suggest a potential rate reduction in September, a development that could significantly impact the digital currency space.

Following Federal Reserve Chairman Jerome Powell’s much-awaited speech, Bitcoin (BTC) held its ground on Wednesday, as the Fed decided not to adjust interest rates from their current range of 5.25% to 5.50%.

Crypto Market Awaits Fed’s Next Move

At a press event held in Washington D.C., Powell subtly suggested potential interest rate decreases in September, assuming the economy maintains its current positive trajectory during the preceding weeks.

As a researcher, I’m sharing that no determinations regarding upcoming gatherings have been made, including the one in September. We are progressing towards the stage where we might adjust our policy rate, but we haven’t quite reached that juncture just yet.

In reaction to the Federal Reserve’s stance, experts in cryptocurrency shared their thoughts on the potential impact within the digital currency market. Michael van de Poppe, founder of MN Capital, expressed optimism about Jerome Powell’s “less hawkish perspective,” indicating that a reduction in interest rates by September is quite likely.

As a crypto investor, I’m buoyed by Van de Poppe’s recent social media post expressing optimism about the positive implications of this latest development for both Bitcoin and other altcoins. Keeping a close watch, I eagerly await the anticipated decision slated for September.

Another analyst, Daan Crypto Trades, echoed Powell’s hint at a possible interest rate reduction in September, suggesting that it is likely to materialize unless there are substantial changes in the data from the Consumer Price Index (CPI).

In the next 48 days leading up to the September gathering, Daan Crypto Trades suggested that the market could shift significantly based on the upcoming decision. This shift might cause temporary price variations immediately following the initial adjustment in September.

Bitcoin To Hit $1 Million In 2028?

In a recent social media post, Timothy Peterson, a Bitcoin writer and researcher, unveiled a significant prediction for the largest cryptocurrency on the market that, if it holds true in time, could result in BTC’s price reaching unprecedented highs. 

As Peterson explains, the value of Bitcoin tends to rise in a direct and exponentially increasing manner based on the square root of the number of times the network has undergone a halving event. In simpler terms, the halving process, which happens roughly every four years, reduces the amount of new Bitcoins entering circulation by half. This reduction is a significant factor that can influence Bitcoin’s price.

According to Peterson’s calculation, which involves Bitcoin’s adoption rate and Metcalfe’s Law, he predicts that the price of Bitcoin could surpass $500,000 by the next halving in 2028. This prediction suggests an estimated annual return of approximately 70%.

Peterson’s forecast is quite remarkable considering the current value of Bitcoin at approximately $65,700, because if it turns out to be correct, it implies an astonishing surge of more than 670% above the present prices.

Additionally, the researcher proposes that by the year 2028, approximately 450 days after the next halving event, Bitcoin’s value could be “significantly over $1 million” based on historical trends. This prediction is consistent with past halving cycles, during which Bitcoin has typically seen a substantial price increase in the years following each decrease in supply.

Bitcoin Holds Ground At $65,700 Amid Unchanged Fed Rates, Anticipating September Moves

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2024-08-01 10:17